For immediate release:                      Contact: Janice Thompson or Sarah Wetherson
June 27, 2003                                                                                            503/283-1922

Political Giving Highlights Partisan Fight to Delay End of
Costly Tax Credit in Oregon House

Groups that benefit from a 36-year-old tax credit, which the House voted to expand earlier this week, gave $266,136, and those opposing the credit gave $255,225, to Oregon House members in 2002. 

Proponents of the expansion gave 91 percent of their political dollars to Republican House members to while opponents gave 89 percent to Democrats.

The bill passed largely along party lines in the House, amid acute partisan rancor. "Given the strong partisan split in political money from both sides of the issue, it will be interesting to see how the vote goes in the more evenly divided Senate," said Janice Thompson, executive director of the Money in Politics Research Action Project.

House Bill 2652 seeks to expand the existing Pollution Control Tax Credit (PCTC), originally passed in 1967, and move the sunset provisions from 2007 to 2014.  The proposal will increase the cost of the PCTC to the general fund by $1.7 million in 2005-07, and $12.7 in 2007-09.

"This bill sends us back to the days of paying polluters to comply with environmental laws.  When we can't even cover the costs of basic environmental protections, why are we giving more corporate handouts to polluters to just obey the law," asks Matt Blevins, legislative affairs director for Oregon Environmental Council,

Proponents of HB 2652, including Associated Oregon Industries, the Oregon Farm Bureau, and other industry groups have flexed financial muscles to enhance the tax credit, which is projected to cost the Oregon  $22.8 million in revenue in 2003-05 biennium.  Groups that have publicly support of the legislation gave $193,836 to legislative candidates in 2002.

To get a complete picture of the role of political money in this fight, it is also instructive to look at campaign contributions from corporations that benefit from the tax credit. The program is administered through the Department of Environmental Quality, which released a study in 2001 showing that just 10 companies received 54 percent of the benefit ($19,196,507 of $35,289,095) granted to the 176 Oregon taxpayers who qualified in the 1999 and 2000 tax years. 

Of the 10 top beneficiaries, five gave direct contributions of $72,300 to legislative candidates.  In addition, Intel funneled $30,000 to the American Electronics Association PAC, or 54 percent of the money AEA raised for 2002.  AEA gave $19,700 to Oregon House members in 2002, of which $10,638 was Intel's share.

HB 2652 Proponents and Select PCTC Recipients 2002 Political Giving to Oregon House Members

Contributor

Gifts to Democrats

Gifts to Republicans

Total Political Giving

AG PAC

$500

$70,500

$71,000

AOI CENTER FOR CITIZEN LEADERSHIP

$9,000

$101,500

$110,500

DAIRY PAC

 

$4,750

$4,750

HEWLETT PACKARD

$1,000

$1,000

$2,000

NORTHWEST ALUMINUM CO

$550

$1,500

$2,050

OR FARM BUREAU PAC

 

$5,536

$5,536

PG&E EMPLOYEES CANDIDATES ASSISTANCE FUND

$10,100

$27,200

$37,300

PORTLAND GENERAL ELECTRIC CO

 

$1,000

$1,000

TRUAX HARRIS ENERGY LLC

 

$1,000

$1,000

WEYERHAEUSER

$2,500

$17,000

$19,500

WILLAMETTE INDUSTRIES INC

$500

$11,000

$11,500

Totals

$24,150

$241,986

$266,136

Percentages

9%

91%

 

Source: MiPRAP analysis of 2002 contributions, with 95 percent of the available data from database under development by the National Institute for Money in State Politics. 

In the past, the Oregon Environmental Council has stood alone in urging for an end to the tax credit.  This year, the Revenue Coalition, a broad-based, ad-hoc alliance of advocates for and providers of public services, joins the OEC in opposition to the bill.  In addition to its 22 social-service groups pushing for revenue reform in the State Capitol, the Coalition includes 10 labor unions.

Labor union money accounts for the lion's share of political money from all of the opponents.  The combined giving to House members from these labor unions totals $254,475.  In addition, other Revenue Coalition members gave $750 to candidates. 

HB 2652 Opponents  2002 Political Giving to Oregon House Members

Contributor

Gifts to Democrats

Gifts to Republicans

Total Political Giving

AFT OREGON AND LOCALS

$15,500

$0

$15,500

SOCIAL WORKERS PAC

$750

$0

$750

OREGON AFL-CIO

$7,050

$0

$7,050

OREGON AFSCME AND LOCALS

$17,500

$11,250

$28,750

OREGON EDUCATION ASSOCIATION

$73,175

$6,000

$79,175

OREGON SCHOOL EMPLOYEES ASSOCIATION

$1,550

$0

$1,550

OREGON STATE FIREFIGHTERS COUNCIL AND LOCALS

$27,325

$11,437

$38,762

PACIFIC NORTHWEST COUNCIL OF CARPENTERS AND LOCALS

$5,488

$0

$5,488

SEIU-OPEU

$77,950

$250

$78,200

Totals

$226,288

$28,937

$255,225

Percentages

89%

11%

 

Source: MiPRAP analysis of 2002 contributions, with 95 percent of the available data from database under development by the National Institute for Money in State Politics. 

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